Kazakhstan announced its readiness to act as the logistics center of the EAEU

The formation of transport corridors will make it possible to turn the Eurasian Economic Union (EAEU) into a connecting link between Europe and Asia, said Deputy Prime Minister of Kazakhstan Serik Zhumangarin. He noted that Kazakhstan, in cooperation with the member countries of the union, is ready to act as the logistics center of the EAEU.

At the Forum of Interregional Cooperation between Kazakhstan and Russia, which takes place in Kostanay, Serik Zhumangarin noted that the EAEU countries have already identified a list of Eurasian transport corridors and launched a digital project to form their ecosystem. “Further work in this direction will make it possible to turn the EAEU into a connecting link between Europe and Asia, the Global South and the North. In this context, Kazakhstan, in cooperation with the rest of the EAEU countries, is ready to act as the logistics hub of the union,” said Mr. Zhumangarin (quoted from TASS).

In 2024, to develop industrial cooperation of the EAEU, the practical implementation of a mechanism for financial support for projects that are implemented with the participation of member countries will begin. According to Mr. Zhumangarin, about $20 million will be allocated annually from the EAEU budget for these purposes. It is expected that through such funding it will be possible to support projects worth $200 million per year.

“We consider as priority joint ventures for the production of electric vehicles, mainline locomotives, cars, agricultural and passenger equipment, construction materials and chemical products,” Serik Zhumangarin clarified. He noted that taking into account the geography, economy and capabilities of Kazakhstan, the republic expects to act as a center for the development of Eurasian industrial cooperation.

The first common mechanism for financing industrial projects for the EAEU countries was approved on October 26. It involves compensation of the interest rate on the loan in the amount of the central bank rate in the borrower’s country. The EAEU budget for 2024 provides about 1.8 billion rubles for these purposes.

Read more in the Kommersant article “Industrial subsidies have entered the EAEU space.”

Milena Kostereva